The Financial Accounting Standards Board on Wednesday delayed implementation of its controversial derivatives rule to give banks more time to adjust their computer and accounting systems.
The postponement of the original Jan. 1, 1999, starting date was sought by dozens of congressmen, banks and accounting firms.
The FASB rule, which seeks to give investors a better idea of the value of derivatives held by U.S. businesses, will go into effect after June 15, 1999, said FASB spokeswoman Deborah Harrington.
That means for most companies, the rule will become effective on Jan. 1, 2000, at the start of their fiscal years.
Separately, the Securities and Exchange Commission proposed a rule that could help brokerages compete better with banks in the $25 trillion over-the-counter derivatives business.
The rule would ease some capital and margin requirements on brokerages such as Merrill Lynch & Co. and Goldman, Sachs & Co. that have set up overseas and unregistered derivatives affiliates to avoid U.S. regulations.
